Advisors Who Dont’ Listen Shouldn’t Be Advisors

Everyone has an opinion, especially in the valley. People love to call themselves advisors and love to give their two cents even when they were not asked. People who give advice tend to think they are contributing their precious time to help an entrepreneur by sharing their insights but I personally think, most advisors give advice to boost their egos!

There are so many so called advisors and investors in the valley and yet I’ve met very few who listens first before flaunting their wisdom. How can someone share valuable insights and experience if they are not even willing to listen and understand the situation? I don’t respect ‘this’ type of advisors and their so called ‘advice’ is more like obnoxious opinions. So, for ‘this’ type of advisors, I only have 2 words for you!

Entrepreneur’s Bravery to Face the Brutal Truth

President’s Day 2009 was monumental. It was supposed to be the BIG Day, the day I launch my startup and flaunt it to the world. Regardless of how perfect or imperfect the end-product, President’s Day 2009 was the day to unveil the curtains.

4 days before this big milestone, I met with an angel investor who was interested to find out more about what I was doing. I was so proud of my production and was sure that my demo would blow him away. After all, 9 months of development and research has gone into it.

I gave a quick overview of my vision for the site and then proceeded with the demo. At the end of the demo, the response I received was “I like these 2 things you are doing but I don’t like the rest. That’s not enough to stand out from the crowd.”

My heart was immediately broken and I wanted to pack, run to my car and cry!

But I sat there and let him criticize my ‘baby’. I listened and fought really hard not to be defensive. Digesting the rush of brutal truth and unbiased feedback was so painful.

He believed in my idea and visions and thought they were “Victoria Secrets” good, however, how I’ve executed online, it was like Kmart quality. This statement intrigued me and I started to open my mouth, asked him why and how I could have executed it better.

It was supposed to be a brief coffee meeting but we chatted for 5 hours. It was hard to keep an open mind during that 5 hours but my curiosity kept me strong.

I left the meeting speechless and shaken. I got home and evaluated all the feedback and bashing. I could be a donkey, be stubborn and toss all the criticism into the garbage can but I decided to face the truth. Most of the constructive feedback was insightful and I started to question myself too.

Am I weak? Am I giving in?

I’m usually a logical and strong-minded (aka stubborn) person and I’ve made my fair share of bad decisions. After a thorough consideration, I made a difficult decision. I’ve decided to re-strategize and re-evaluate my site. I’ve decided not to launch the site on President’s Day 2009. It was a hard call, but I felt it in my heart that it was the right decision.

What’s I’ve Learned:
If you are asking for opinions and feedback, you better be brave and have an open mind to accept the brutal truth. Evaluate each feedback closely and then go with your heart.

Sizing Up A Prospective Client

The most important lesson learned during the 1st year of my entrepreneurial endeavor is ways to size up a prospective client. As a small new business, time is precious and wasting time on non-serious clients can be a costly mistake.

Here are a few ways I size up a client:

1) Always ask for their budget range to make sure their numbers are attractive enough for me to make a decent profit margin.

2) When providing a proposal, always give the client a few options with different pricing models. 1st, you want to make sure the client feels like the KING and has an array of choices, and the choice they make or didn’t make may also show how serious they are as a client.

3) Always leave room for negotiations. 1st it shows that you treasure them as a client and you are willing to negotiate and also provides an idea on how serious or how easy it would be to work with this client in the long run. Client with an attitude or loves to low ball are usually unpleasant clients to work with.

4) Always ask for a small deposit/fee out front to ensure the commitments of the client. If the project requires assessment and build, you may want to collect a small fee for the assessment and then apply this fee to the building cost. This makes the client feels the assessment was done for free and at the same time, you know you’ll get a high-committed client!

I know the above pointers are more or less common sense. It’s always good for me to refer to them before meeting the client or before any serious negotiations. It keeps me in check else I might get too distracted by the clients at times.

Book Reviews – Ruby on Rails

The last time I posted something on this blog was donkey months ago. I’ve been busy learning Ruby on Rails. The first time I heard about it was at the Web2.0 Expo in 2007 and started to explore what’s so magical about this framework. The more I explored the more intrigued I got. So I started with 1 book, then the 2nd and now I’ve 5 rails book. Most of these books provided very useful instructions and inspiration to the startup that I’m launching in 2 months. It feels great to be the founder, ceo, accountant and janitor of a startup and at the same time, having full control of the code and development. Of course, such sweetness came at a price – a huge learning curve and uphill battle for me.

So if you are RoR wannabe, this review may help:

1) Build Your Own Ruby on Rails Web Applications (Sitepoint)
Great beginners book to start with!

2) Agile Web Development with Rails (The Pragmatic Programmers)
A must have! I use it more as a Rails dictionary rather than an instructional learning tool. It’s also written by the guys who created Ruby on Rails!

3) RailsSpace – Building a Social Networking Website with Ruby on Rails (Addison-Wesley)
Very well written, easy to follow. Good teachings on how to write clean, uncluttered code.The chapter on Friendship feature is especially useful.

4) Practical Rails – Social Networking Sites (apress)
Yet another easy to follow book. The instructions on building a photo gallery was useful and provided good information on how to use plugins.

5) Rails Solution – Ruby on Rails Made Easy
It a complete waste of time! The code was sloppy and the resource provided on their website is not informative because the authors of this book claims that the code was bug-free hence supportive resource is not needed!

It is also important to purchase a rails book that provides instructions for the version of rails installed, else some lessons provided will not work and makes learning more difficult!

How I applied what I learned in my divorce to my Business Venture!

I filed for divorce because I went to bed with the wrong guy. We had different values, different goals, especially different monetary values. Why wasn’t I smart enough to explore all these essential factors before I walked down the aisle and said my vows? Well, because of fairy tales, I ignorantly believed that love is enough to a long, lasting marriage!

And when I braved the world to make one of the life changing decisions to file for divorce, I unexpectedly had to face pouring questions and opinions from friends and family. Everyone had an opinion even when I didn’t ask for any. Everyone had a story to share, thinking it would make me feel better. After a while, all these stories and opinions became noise! I had to learn to ignore and only listen to those who were sincerely, truly giving relevant advice.

So, how do I apply what I learned from my divorce? Starting a business is like having a baby, planning a journey that also affects your personal life. I might have failed in selecting the right life partner, but I’m more savvy now when selecting business partners. There were a few interested parties to co-found my business with me but I was really selective this time. I would ‘date’ them, discuss about our past, lives, goals and dreams. Sometimes, spending time together and engaging in conversations is the best way to get to know a person. Making money by joining forces wasn’t a good enough reason. During such conversations, I would wonder if I’m able and willing to ‘grow old’ with this potential business partner and ‘have a kid’ (grow a business) with this partner. It’s like selecting a spouse without the SEX!

The divorce has taught me that everyone has an opinion and it’s human nature to be judgmental. When I decided to start my business, everyone had to give me their 2 cents, their opinions and some can be very discouraging. Do people feel obliged to give their opinions even when not asked for? I’ve learned to choose what to listen to and who to listen to during my divorce and I apply the same skills in my business venture. People who truly knows how to give advice ask questions, they wouldn’t tell you what to do. By articulating my respond to their questions, it reinforces my vision, goal and may make me rethink some of my strategies. Starting a business is tough and if I had decided to listen to all the opinions and views, I would have not launched my business and ultimately be heart broken once again!

One life and it’s my life. Only I know what’s best for me. Be strong and listen only to your heart and maybe a handful of people/mentor. Best divorce lessons for me!

Help, help and lots of free help!

Assistance can come in all shapes and sizes but getting free help and advice in running a small business is heavenly! Here are a few places where I turn to for advice, help, direction and encouragement!

Silicon Valley Small Business Development Center

SCORE.org

SBA

I believe these wonderful organizations have contributed to the success of many businesses and have made the path of being an entrepreneur less lonely. Thanks to all these wonderful business veterans who volunteer! Thank you for keeping the entrepreneurial spirit alive!

How many steps does it take to Start and Run a LAW-ABIDDING Business?

The company website is almost done and business cards are ready to be sent for printing. Finally, some light at the end of the ‘business logistic’ tunnel and time to enjoy the real fun of running the business. Next step, which is a crucial step – incorporate the business. Well, to use an attorney or not to use an attorney? Let’s answer this question later. I was curious how many steps it takes to incorporate a business and I stumbled upon this site: http://www.calgold.ca.gov which spells out all the steps required to take at the federal, state and local level that relates to my business type! So cool but the laundry list of this to be done is not exactly exciting!

FEDERAL

Copyright Registration
An individual may want to obtain a copyright to protect his/her interests.
Contact: U.S. Copyright Office
Library of Congres

Employer Identification Number (EIN or SSN)
Employers with employees, business partnerships, and corporations, must obtain an Employer Identification Number from the I.R.S. Businesses can obtain appropriate Federal income tax forms from this location.
Contact: US Department of Treasury
Form SS-4 (EIN Application)
Form 2553 – S corp election
Internal Revenue Services

Proof of Residency Requirement
Employees hired after November 6, 1986 must provide proof of eligibility to work in the United States.
Contact: US Immigration and Naturalization Service

Registration of Trademarks
An individual may want to register a trademark if it will be used or have an intention to use it in interstate commerce.
Contact: US Patent and Trademark Office

STATE of California

Corporation, Company or Partnership Filings
If you are considering becoming a corporation, (either stock or nonprofit), a limited liability company or a partnership (limited, or limited liability), you must file with the Secretary of State’s Office
Forms

Discrimination Law
Harassment or discrimination in employment is prohibited if it is based on a person’s race, ancestry, national origin, color, sex (including pregnancy), sexual orientation, religion, physical disability (including AIDS), mental disability, marital status, medical condition (cured cancer), and refusal of family care leave. Discrimination in housing, public services and accommodations is also prohibited.
Contact: Department of Fair Employment and Housing

Occupational Safety and Health Information
Businesses with employees must prepare an Injury and Illness Prevention Plan. The state provides a no-fee consultation service to assist employers with preventing unsafe working conditions and workplace hazards.
Contact: Department of Industrial Relations

Registration Form for Employers
Required to file a registration form within 15 days after paying more than $100.00 in wages to one or more employees. No distinction is made between full-time and part-time or permanent and temporary employees in meeting this requirement.
Contact: Employment Development Department

Sales & Use Permit (Seller’s Permit)
All businesses selling or leasing tangible property must obtain a Seller’s Permit.
Contact: State Board of Equalization
Sales/ Use Tax Division

State Income Tax Information
Businesses should obtain the appropriate State income tax forms from the Franchise Tax Board.
Contact: Franchise Tax Board

Trademarks and Service Marks Registration
Any individual, firm, partnership, corporation, union, association, entity or organization may register a trademark or service mark with the Secretary of State.
(http://www.sos.ca.gov/business/ts/ts_formsfees.htm)
Contact: Secretary of State
Business Filings Section
Trademarks Unit

Wage/Hour Laws
Businesses with employees must comply with laws establishing minimum standards for wages, hours and working conditions.
Contact: Department of Industrial Relations

Workers’ Compensation Information
Businesses with employees must maintain Workers’ Compensation Insurance coverage on either a self-insured basis, or provided through a commercial carrier, or the State Workers’ Compensation Insurance Fund.
Contact: Department of Industrial Relations
Division of Workers’ Compensation

CITY & COUNTY (San Mateo)

Business License (Business Tax Registration)
Any person or entity carrying on a trade or business must obtain a business license, use and occupancy permit or business tax certificate including those that are located outside the city limits but perform services for customers inside the city limits.
Contact: City of San Mateo
Finance Department
330 West 20th Avenue
San Mateo, CA 94403
650-522-7113

Business Property Statement
Businesses are required to report all equipment, fixtures, supplies and leasehold improvements held for business use.
Contact: County of San Mateo
Assessor’s Office
Business Property Division
555 County Center, Third Floor
Redwood City, CA 94063
650-363-4501

Fictitious Business Name
When a business goes by any name other than the owner’s real name the business is being operated under a “fictitious name” and must file a “Doing Business As” statement.
Contact: County of San Mateo
Clerk’s Office
Business Services
555 County Center, 1st Floor
Redwood City, CA 94063
(650) 363.4500

Marketing Strategies 101

Before business school, whenever I thought of marketing strategies, I would think of advertising, tv commercials, billboards. I’m so stupid huh? I think the best takeaway from my marketing classes were the basic fundamentals of STP:

Segmentation – know how the market is segmented

Target – who are my targeted audience

Position – how can I position myself so that I can differentiate my business from potential competitors? Some believe there are ’4P’s, some believe there are ’5P’s. I think there are ’6P’s – potentially 6 different ways to stand out:

People – customer service, consultants, employees, how do they all add value to the business?

Place – geographical location

Promotion - successful marketing campaigns, how to spread the word with the shortest amount of time and money?

Process – is my operational process different from competitors? is my operation process simple? is my operational cost cheaper than my competitors which results in lower-priced products?

Product – how is my product different from competitors?

Price – do I compete on price?

I believe these are important basic fundamentals and it contributed to the growth of my brain (better late than never)

Analyzing a Business Idea without Any Emotions

Being a software engineer and a female, it’s hard to put my emotions aside when analyzing my business idea. I’m fortunate to be have a brain that loves programming and being a female, it’s hard not to be bias. It’s so easy to come to a conclusion that my business idea is great and fantastic because no one has developed something similar and if I build it, they will come! So what should I do to put my emotions aside and conduct a fair and unbiased analysis?

I turned to the stuff I learned in business school. Honestly, I was skeptical in the beginning because some of these models were created so many years ago, were they still relevant in today’s business world?Did the founders of google analyze in such great lengths when they were creating their search engine?

Oh boy, I was so wrong. These models made me think, flooded my mind with questions! They forced me to do real research, get real data that enabled me to write a reasonably accurate business plan. With a deeper understanding, the competitive strategies that I concocted were more realistic too! They were like the light beaming from the lighthouse, guiding me to draw my own conclusion about my business idea without any emotions involved!

These are my favorite models:
1) Generic strategies
2) Growth/share matrix
3) Porter’s 5 forces
4) SWOT

Tips and Tricks for Choosing the Perfect Domain Name

Perfect domain name? Is there such a thing? What’s perfect? I came across these 2 articles that provided insightful guidelines in picking the perfect domain names:

1) Make it a dot-com
2) Keep it simple, short and easy to spell
3) Register company, brand names and trademarks as domain names
4) Register keywords and household words related to the company as domain names
5) Consider registering personal names
6) Register possible misspellings of the company domain name
7) Register .mobi
8) Avoid long hyphenated URLs, dashes and other symbols
9) Register domains for as long as possible, e.g. 10 years
10) Protect your domain name with other extensions, e.g. .net, .info, .biz etc

Source: Technology.inc.com
10 Tips for Choosing a Domain Name
Choosing the Perfect Domain Name